CI&T (CINT) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of BRL 622.2 million in Q3 2024, up 17.6% year-over-year and 10% sequentially.

• Adjusted net profit rose 32.9% year-over-year to BRL 56.5 million, with a margin of 9.1%.

• Top 10 clients' net revenue grew 25.3% year-over-year, reflecting strong client relationships and expansion.

• Significant productivity gains from the CI&T Flow AI platform, now adopted by over 75% of teams and 100+ clients.

• Onboarded 520 new employees in Q3, with total headcount reaching 6,755, an 8.3% sequential and 10.5% year-over-year increase.

Financial highlights

• Net revenue: BRL 622.2 million in Q3 2024, up 17.6% year-over-year and 10% sequentially.

• Adjusted EBITDA: BRL 121.4 million, up 24.2% year-over-year; margin improved to 19.5%.

• Adjusted gross profit was BRL 231.8 million, up 25.8% year-over-year; margin at 37.3%.

• Cash generated from operations in 9M24 totaled BRL 294.9 million, up 15.9% year-over-year.

• Cash conversion to adjusted EBITDA at 94% for the nine months of 2024.

Outlook and guidance

• Q4 2024 net revenue expected between BRL 620 million and BRL 655 million, implying 22% year-over-year growth at midpoint.

• Full-year 2024 net revenue growth at constant currency guided to 0.5%-2% year-over-year; reported basis expected to be 4 percentage points higher.

• Adjusted EBITDA margin guidance raised to 18%-19% for 2024.

• Guidance reaffirms V-shape recovery and sequential growth in 2024.

• Solid exit rate in Q4 2024 positions company for sustainable growth into 2025.